Last year Utah saw one of the biggest identity theft breaches in US history when hacker stole near 780,000 medicaid records. With threats like these looming, it’s difficult for any business or company to keep checkbooks or order them in their workplace because of check fraud.
Both the business and the consumer will be affected since the illegal check is not even real. Forging or creating fraudulent checks start with stealing financial documents. If a criminal gets hold of a checkbook stock or even an old check he can easily manipulate the image via computer editing and have it passed off as real. It is important for businesses to store checks without any financial information printed on them so that if they are stolen, your bank account information will not be compromised.
Forgery can come in the form of a stolen check. Besides copying somebody’s signature it’s also considered forgery to issue a check without proper authorization. Criminals might also use false identification just to be able to make an exchange at the bank.
Paperhanging is something that people do with closed accounts. They might pay, re-order or purposely write checks based on closed accounts. It’s considered bank check fraud because the recipients of the check won’t know that it’s an invalid check until they find out at the bank. It’s basically cheating on another person and it’s considered illegal.
Check kitting is a type of loophole in most banking systems. Some criminals will open accounts at more than one bank. When the bank gives out available funds during “float time” the criminal would simply create inaccurate checks. This is like paperhanging but may be harder to notice because the damage is spread across multiple banks.
The most common of all types of bank check fraud is counterfeiting and alteration. Criminals will fabricate a check by means of a scanner, a specific type of software and high-grade laser printer. Checks can be altered too with the use of chemicals like acetone. Liquids like this can erase handwriting and some printed information on checks. Criminals can either change the written amount or date on an old check.
Many banks suffer greatly from these types of scams, especially business owners. The hassle of having to report the issue brings more expenses and takes up more time when you could have been working, or better yet, taking a break at home. To avoid fraud, focus on investing in check stock which does not have pre-printed account information, or use accounts payable automation. To learn more about check fraud click here.
During these troubled financial times it can be hard to keep your profit margin high. One way to do it is to get more work done without adding more labor costs. This can be accomplished by merging jobs. Train your employees to do more than one task. This way, when they are finished with their current task, they can help out in a different area. This is a small part of what is called lean manufacturing, and it's becoming an important businesses asset for accountable care organizations, consulting firms, and manufacturers.
Consider for a moment a machine that needs some work done to it. Normally, the people who need that machine to perform their duties get a break. They are still on the clock and being paid, but not producing anything. Teach them to work with other machines or even in different departments and they can continue to be productive. You could even have them doing some cleaning or janitorial work. anything that keeps them doing something so they are not being paid to do nothing. And modern VoIP technology means that it's easier than ever for employees to work remotely.
Many employees will enjoy being able to be trained elsewhere. This gives them more to put on a resume and more experience if they should ever need to look for work. Some may scoff at the idea of doing something they feel is beneath them, but you can gently remind them the reason they are needed elsewhere is because the person that normally does that has been laid-off.
In the office, there are many jobs that can be accomplished by one person. A receptionist can file or type up correspondence when not busy on the phones.
Make sure payroll is handled as much as possible by supervisors so the payroll department can save time and possibly help out in another accounting area.
Having people trained to do more than one job does not mean you will have to be letting others go. It just means that you will be able to shift around your employees to where they are most needed at that time. This will save time and money in the long run. it will also increase production and allow for larger and more sales. That will mean more job security for everyone.